Robinhood Wallet, Fomo Face Regulatory Scrutiny Over Memecoin Purchases

Robinhood Wallet and Fomo have been allowing users to buy memecoins using credit cards without undergoing separate know-your-customer (KYC) checks.

The transactions were classified as 'digital goods/media' rather than cryptocurrency transactions, which allowed users to receive standard card benefits such as points and cash back.

JPMorgan Chase has asked Visa to investigate the alleged misclassification of these payments. The New York State Attorney General's Office is also reviewing the payment structure.